How Mc.Donalds run theirbusiness in China?S1180189Hirofumi Nakahira
Agenda• Success of McDonalds• Signing of McDonalds• McDonald’s rival KFC• Why KFC success• Importance in China• Safety of McDonalds food• References
Success of McDonalds• When McDonald’s first opened in China in1990, these streets were clogged withbicycles.• But car ownership rate grew upexplosively.• The company opened the first drive-thruoutlet in November, it’ very successful.
Signing of McDonalds• In 2006, McDonald’s signed an agreementwith the Chinese state oil company.• Sinopec, granting it the right to openMcDonald’s stores at any of Sinopec’snew and existing 30000 gas stations.
McDonald’s rival KFC• When McDonald’s opened its firstmainland store in 1990, KFC had alreadybeen there for three years.• Today, there are more than 1,900 KFCstores in China.• Theyre traditional, theyre convenient, andtheyre cheap.
McDonald’s rival KFC• McDonalds opened 200 new outlets in2011 and 300 in 2012, much higher thanoriginal estimates.• Its total number of stores is stillsignificantly lower than archrival KFC,which has so far opened over 3,800outlets in more than 800 cities.
Why KFC success• KFC has already launched a series ofChinese-style meals tailored to localcustomers, paving the way for McDonaldsto customize its menu to better suit localtastes.
Importance in China• Taste, convenience and price areImportance in China.• It is a nightmarish problem in a developingcountry where corruption is rampant andsafe food handling practices are stilllargely unknown.
Safety of McDonalds food• McDonalds have hand washing stationsand hand sanitizer right out in mainrestaurant.• Side of safety of food of McDonalds is oneof advantage.